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MCM - Update savings-plan-compute-overview for uuf235286
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articles/cost-management-billing/savings-plan/savings-plan-compute-overview.md

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ms.service: cost-management-billing
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ms.subservice: savings-plan
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ms.topic: overview
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ms.date: 02/14/2024
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ms.date: 04/25/2024
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ms.author: banders
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---
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## How savings plan benefits are applied
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With Azure savings plan, hourly usage charges incurred from [savings plan-eligible resources](https://azure.microsoft.com/pricing/offers/savings-plan-compute/#how-it-works), which are within the benefit scope of the savings plan, are discounted and applied to your hourly commitment until the hourly commitment is reached. Usage charges above the commitment are billed at your on-demand rate.
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With Azure savings plan, hourly usage charges incurred from [savings plan-eligible resources](https://azure.microsoft.com/pricing/offers/savings-plan-compute/#how-it-works), which are within the benefit scope of the savings plan, are discounted and applied to your hourly commitment until the hourly commitment is reached. The savings apply to *all eligible resources*. Usage charges above the commitment are billed at your on-demand rate.
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You don't need to assign a savings plan to your compute resources. The savings plan benefit is applied automatically to compute usage that matches the savings plan scope. A savings plan purchase covers only the compute part of your usage. For example, for Windows VMs, the usage meter is split into two separate meters. There's a compute meter, which is same as the Linux meter, and a Windows IP meter. The charges that you see when you make the purchase are only for the compute costs. Charges don't include Windows software costs. For more information about software costs, see [Software costs not included with Azure savings plans](software-costs-not-included.md).
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